Financial
Aid
Student Loans
 Students
that qualify for federal student aid may borrow
money through the federal student loan program
to meet their college costs.
Type of Loans
Subsidized loan:
A student qualifies for this loan on the
basis of need. The loan will be subsidized , which
means no interest will accrue, nor is any payment
required, until six months after the student ceases
to be at least a half-time student.
Unsubsidized loan: If a student does not
qualify or qualifies only partially for a subsidized
loan, all or a portion of the student's loan will
be unsubsidized . This means the student is responsible
for the interest on the loan from the date of
disbursement. Repayment on both principal and
interest will begin six months after ceasing to
be at least a half-time student. All other terms
are identical to the subsidized loan program.
Loan Amount
The loan amount depends on a
student's budget and remaining financial need
after subtracting grant assistance and other sources
of aid. A student who has completed less than
30 credit hours (credits taken at OCC plus transfer
credits) may qualify to borrow up to $3,500. A
student who has completed 30 credit hours or more
may qualify to borrow up to $4,500. If the student
is independent (or a dependent student's parent(s)
were denied a PLUS loan), the student may borrow
up to an additional $4,000 unsubsidized loan.
Loan Disbursements
A federal loan is disbursed in installments normally
at the beginning of each term. The loan proceeds
are credited to the student's account. New borrowers
are required to complete entrance loan
counseling and must wait 30-days from
the beginning of the term before a loan can be
disbursed.
Loan Lender
Ocean County College uses a College
Lender List and also uses the New Jersey Higher
Education Student Assistance Authority as its
guarantor. However, per Federal regulations, borrowers
have the right to choose his or her lender, even
if that lender is not one that the school has
previously used . A school may not refuse to certify
a loan based on a borrower's choice of lender
or guarantor.
Additional Lender information and addresses are
available in the Financial Aid Office.
Master Promissory Note
(MPN)
A Master Promissory Note (MPN) must be signed
before the first disbursement is made. This
MPN is a multi-year note and
therefore need only be signed by first-time
borrowers. A new borrower is a student
that has never borrowed a federal student loan
while attending OCC.
All borrowers will receive a Plain Language Disclosure
directly from the lender that indicates the loan
period and the anticipated disbursement dates
and amounts. Information on canceling all or a
portion of the loan(s) is included. All borrowers
will also receive notification from the lender
when each disbursement is released. In addition,
the Financial Aid Office will send a Notification
of Loan Disbursement and Opportunity to Cancel
to the students Ocean Cruiser e-mail address.
Loan information, paper master promissory notes,
paper entrance counseling forms are available
in the Financial Aid Office. They will be mailed
to you upon your request.
Apply for a Parent Loan
Parents may apply for a Federal Parent
Loan for Undergraduate Students (PLUS) through
our preferred lenders. To get an immediate pre-approval
(or denial) select a lender and go online to file
an application.
Student Loan Counseling
Entrance Counseling
All borrowers of a Federal Loan must complete
entrance counseling before the proceeds of the
first disbursement of the loan may be released
by OCC. During entrance counseling the borrower
is reminded of the seriousness of taking a loan
and of the borrower's responsibilities. The terms
of the student loan, the repayment obligations,
and the consequences of defaulting on a loan are
discussed. First-time borrowers are notified by
the Financial Aid Office of the requirement to
complete entrance counseling.
Complete loan entrance counseling online at:
http://mapping-your-future.org
Exit Counseling
When a Federal Loan borrower graduates,
withdraws, or drops below half-time status, he/she
must complete exit counseling. During exit counseling
the terms and conditions of the repayment of the
loan are reviewed, along with debt management
strategies.
Loan exit counseling online at: http://mapping-your-future.org
Terms and Conditions of
Student Loans
Terms
and Conditions Chart
Default
A student borrower who does not repay his/her
loan may go into default. If the borrower is in
default, the following may happen:
- the lender can require you to repay the entire
amount of the loan immediately,
- the lender may also sue you to collect on
the loan,
- the lender may also notify credit bureaus
of the borrower's default status, which may
affect the borrower's future credit rating,
- the Internal Revenue Service may withhold
the borrower's income tax refund and apply it
toward the loan, and
- a student in default on a student loan will
not qualify for future federal or state financial
aid.
Loan Consolidation Options
Loan consolidation terms are available through
the Federal Loan Consolidation Program, as well
as other lenders. For more information, borrowers
go online at: http://mapping-your-future.org
Change in Student's Enrollment
Status, Name, Address, and/or Social Security
Number
A student borrower must immediately notify all
Stafford loan lenders if he/she:
- fails to enroll for the period for which the
loan was intended
- leaves school for any reason
- attends school less than half-time
- transfers from one school to another
- graduates
- changes his/her name, address, or social security
number
Typical
Beginning Payments for Federal Loan Repayment
Plans
Viewing
examples may help in estimating how much a
borrower will be expected to repay when a Federal
Loan becomes due and payable. The repayment schedule
for a specific student's loan(s) may be different
from the example. No allowances are made for deferments
or cancellations.
Loan Deferment and Cancellation
Federal Loan Deferment Summary
Under certain circumstances, borrowers can receive
a deferment or forbearance on a federal loan.
During a deferment, a borrower is allowed to postpone
payments temporarily, and no interest accrues
on a subsidized loan.
If a borrower is temporarily unable to meet the
repayment schedule, but not eligible for a deferment,
he/she can receive forbearance for a limited and
specific period. During forbearance, payments
are postponed or reduced, but interest continues
to accrue on subsidized loans.
Deferments and forbearances are not automatic.
Borrowers must formally request a deferment or
forbearance through the procedures established
by the holder of the loan, and he/she must continue
making payments until notified that the deferment
or forbearance has been granted.
Deferment
Conditions
Federal
Loan Cancellation Eligibility Summary
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